04/03/2009 GAAS:145:09 FOR IMMEDIATE RELEASE Print Version |
Gov. Schwarzenegger Creates First-in-the-Nation Recovery Act Inspector General
Appoints LA City Controller Laura Chick to Further Ensure Taxpayer Protection & Stimulus Accountability
Continuing his commitment to ensuring that federal economic stimulus funds are utilized with the utmost transparency and accountability in California, Governor Arnold Schwarzenegger today created the first-in-the-nation position of Inspector General to act as watchdog over the American Recovery and Reinvestment Act (Recovery Act) funds as they are dispersed in California and named Los Angeles City Controller Laura Chick to this position.
“I am proud to announce this first-in-the-nation position that will make sure the funds we receive from the Recovery Act are used with accountability and transparency to stimulate our economy and create jobs,” said Governor Schwarzenegger. “Laura’s impressive track record as a watchdog and public servant makes her uniquely qualified to ensure this funding is used as it was intended – to create jobs and help our state through this difficult economic time.
Chick currently serves as Los Angeles City Controller, a citywide elected position in which she is chief auditor, accountant and taxpayer’s watchdog. Since 2001 she has released over 170 audits and has exposed a major backlog of untested rape-kits, contracting improprieties at the city airport and harbor, millions in over-billing by a public relations firm, and hazing and harassment at the Los Angeles Fire Department. Last year, Chick authored the groundbreaking blueprint for a comprehensive gang strategy in Los Angeles. She also created the city’s Waste and Fraud Unit and 24-hour whistleblower hotline. Prior to becoming Controller, Laura Chick served as a Los Angeles City Councilmember from 1993 to 2001. Chick also is an appointee of Governor Schwarzenegger to the California State Bar Board of Governors.
“President Obama and Vice President Biden called for accountability when they launched the Recovery Act, and Governor Schwarzenegger has made it clear that he is equally dedicated to ensuring that this funding goes toward its intended purpose of creating jobs and revving up our economy,” Chick said. “I am coming to Sacramento to deter, detect and disclose any waste, fraud and abuse of these precious stimulus dollars.”
Chick, whose salary will be $175,000 annually, will be watching for waste, fraud and abuse, and whether the estimated $50 billion in direct spending from the Recovery Act is used appropriately in California. She will review the work of the California Recovery Task Force and all funding that is funneled through the state as well as funding that is sent directly to cities, counties, school districts, non-profits or other entities over the coming two years. This position was created through Executive Order S-04-09 and reports to the Governor.
In early March, Governor Schwarzenegger launched www.recovery.ca.gov to ensure complete and full transparency of federal economic stimulus funding as it is received and expended by the state. The Web site provides Californians with new tools to monitor ongoing American Recovery and Reinvestment Act activity and provide up-to-date information about how and when their federal tax dollars are spent.
The full text of Executive Order S-04-09 is below:
EXECUTIVE ORDER S-04-09
WHEREAS Congress passed, and on February 17, 2009, President Obama signed, the American Recovery and Reinvestment Act (ARRA), a $787 billion plan to create jobs, stimulate the economy and make significant improvements to the nation’s infrastructure; and
WHEREAS a prime focus of my administration has been on economic stimulus, job creation and rebuilding California’s infrastructure to ensure long-term growth and global competitiveness; and
WHEREAS pursuant to ARRA, California will receive as much as $85 billion dollars in new federal funds and tax benefits for education, infrastructure investment, energy efficiency, housing, health and human services, transportation, science and technology, unemployment assistance and various other programs; and
WHEREAS these federal economic stimulus funds will add to the billions of dollars Californians have already committed to rebuilding the State’s infrastructure through their approval of the Strategic Growth Plan and $52 billion in infrastructure bonds in 2006 and 2008; and
WHEREAS it is critical to California’s economic recovery that ARRA is implemented quickly and efficiently and that its funds are deployed on the most meritorious projects to ensure the greatest stimulus effect; and
WHEREAS protecting taxpayer dollars requires a high degree of accountability and transparency and the public should have easy access to information about how their tax dollars are being spent;
WHEREAS my Administration has created the California Federal Economic Stimulus Task Force (California Recovery Task Force) to track the ARRA funding coming into the state; work with President Barack Obama’s administration; help cities, counties, non-profits, and others access the available funding; ensure that the funding funneled through the state is spent efficiently and effectively; and maintain a Web site that is frequently and thoroughly updated for Californians to be able to track the stimulus dollars; and
WHEREAS it is critical that an independent Inspector General be established to conduct reviews and audits to ensure State and local government compliance with the federal requirements of ARRA and applicable state law and to bring maximum public transparency into the oversight of these funds.
NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, hereby direct:
1. The establishment of an Inspector General position that is independent from the California Recovery Task Force.
2. The Inspector General shall be appointed by the Governor.
3. The Inspector General shall do the following:
a. Protect the integrity and accountability of the expenditure of ARRA funds in California by preventing and detecting fraud, waste, and misconduct in the use of those funds.
b. Conduct periodic reviews and audits to ensure State and local government compliance with the federal requirements of ARRA and applicable state law.
c. Provide independent and objective reports to me, the Legislature, U.S. General Accountability Office, and the Recovery Accountability and Transparency Board on the activities and findings of the reviews and audits, including any identified program and management problems, as it relates to use of the ARRA funds in California, and recommendations to correct them. These reports shall be posted on the Internet to provide additional accountability and transparency to the public.
d. Coordinate with the Bureau of State Audits, the State Controller, the Department of Finance, and local auditors and comptrollers to identify and deploy resources in a manner to insure the highest level of review and accountability.
e. Provide technical and consultative advice to the California Recovery Task Force on an on-going basis.
IT IS FURTHER ORDERED that the agencies and departments under my direct executive authority shall cooperate in the implementation of this Order.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, officers, employees, or any other entity or person.
I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 3rd day of April, 2009.
ARNOLD SCHWARZENEGGER
Governor of California
ATTEST:
DEBRA BOWEN
Secretary of State
